The Moderating Role of Good Corporate Governance on Corporate Social Responsibility and Firm Performance: Evidence from Indonesian Banking Industry

Purpose: This study examines the role of Good Corporate Governance (GCG) in moderating the influence of Corporate Social Responsibility (CSR) on firm performance as proxied by ROE, ROA and Tobin's Q. Methodology: The samples were 9 banking firms hence we obtained 90 firm-year observations in 10 years period. Simple regression and moderated regression were used as the methods. Findings: The results prove that CSR has a significant effect on ROA and Tobin's Q. Furthermore, managerial ownership alleviates the influence of CSR on ROA and Tobin's Q. Meanwhile, institutional ownership is able to strengthen the influence of CSR on ROA and alleviates the influence of CSR on ROE. Originality/Value: This research is the first study in examining the role of GCG in moderating the influence of CSR on firm performance, particularly in banking industry in Indonesia as an emerging country.